tv Boom Bust RT April 25, 2019 8:30pm-9:01pm EDT
let's go. an international summit for china's project of the century these are global report today as world leaders gather in beijing to discuss the bell and road initiative the three day forum is the third of its kind and thirty seven world leaders are expected to attend a moment notable absence is at the summit are neighboring india and turkey which is protesting china's treatment of the weaker muslim terror minority while the united states will be represented by a low level delegation. from europe italian prime minister has that the contact and u.k. chancellor of the exchequer philip hammond will attend while poland and spain declined to send any delegation the summit convenes as china seems to be making significant inroads in europe while having to manage the growing grumbles about equity and then vironment impacts from b r i partners closer to home perhaps most notably malaysia but china's efforts to quell critics may be working as earlier this month malaysia
renewed its participation in a ten point seven billion dollar railroad initiative which the southeast asian nation had previously cancelled. turkey isn't just in the news due to their refusal to attend the p.r.i. summit the lira is still sliding and policy makers have declined to pull the most obvious lever for halting that slide earlier today the lira was falling towards six against the us dollar the turkish currency has lost thirty six percent since the beginning of this year and domestic as lation is pushing twenty percent the leader as freefall came after the turkish central bank chose to leave interest rates steady at twenty four percent in leaving the rates where they are the policymakers are abandoning a previously announced policy and effectively choose not to take any action to boost the leader out with monetary tightening. turkish president ardo juan has expressed skepticism and hostility towards central banking and seems to be
determined not to tighten monetary policy while turkey is in the midst of a recession. as trade tensions between us and europe continue the continent is turning to asia for economic opportunity the european union and japan are looking at tightening their relationship with a summit in brussels artie's alex mahela joins us for more so alex before we talk about brussels what's the latest with the europe u.s. relationship. now looks like trump's plan to punish europe isn't working out exactly as expected for him if they're basically not being punished too hard the european central bank says that europe is not on its knees just trump wanted it to happen but there is a lot you know we're going to get a little bit and what's happening here is that these major tariffs against steel and aluminum like we see up here in canada etc are affecting the industry to a certain degree but when you have exports going on around the world that isn't really killing those industries and when it comes to manufacturing of heavy
equipment things are of actually gone the opposite way the heavy equipment itself is doing very well because of other tariffs that trump doesn't pose of those would be the tariffs against china so get out into the marketplace china is being imposed with a whole array of tariffs their price has gone up now that europeans look much more competitive than they used to look so trumps tariffs against europe and especially china are now actually benefiting this european industry also who's getting hurt in all of this well it seems the american consumer is taking the brunt of things because when it comes to steel and aluminum europeans have certain patents and there are certain types of steel and aluminum that u.s. manufacturers use to create their products so once the stuff now gets to the u.s. those u.s. manufacturers have to pay the tariffs and then what does that translate to when it gets to the consumer more expensive goods so any way you turn it this is not looking good and till you get to the psychological part of it all trump is winning
the psychological war he hasn't put tariffs up against auto manufacturers in europe yet to the extent that there's any issue so this is the major threat and what this does to auto manufacturers it kind of plays with their minds of how much more output to they need for this year and for next year when they are building cars and what happens if tariffs do kick in so it really comes down to that when we see companies in europe having to kind of pull back in to make predictions about how much. and they sell to the u.s. that's where trump is when he but it's really not enough to make some massive impact we know that trump and the american administration will be speaking to the europeans very soon about all of this so representatives from the e.u. and japan have actually come together to push forward with more economic cooperation what can you tell us about that that's happening in brussels so you should be the prime minister of japan if you want really high level while he's there and he's talking to delegates from the e.u. other talk about everything about you know strategy cooperation expect standing
trade cooperation and we have a an agreement between japan and europe that just kicked in a few weeks ago and that's actually turned to be a part of the concerns that the europeans are how they because a part of that agreement was supposed to be the paris accord the climate change of course of two thousand and fifteen doesn't seem that a jab at japan has pulled that push that through their legislature so that's really one of the talking points as well as the g. twenty summit summit that will be happening in osaka in june this is basically a good time to prep for that as well and to talk to the rest of their partners in the g. twenty well a deadly day keep an eye on that our take our spondon alex mahela dish thank you so much time thank you. the global auto industry like any other has its original ups and downs india the auto sector has seen some impressive growth while u.s.
based tesla is in a spotlight for all the wrong reasons after the company missed earnings posting the fourth worst quarter since going public here to iron it all out in a seamless picture of the global state of the auto industry as the car coach lauren fix welcome. thank you for having me so let's come to it the india auto market expanded a percent in production logging the fastest growth among the top ten production hubs the growth has largely come off the back of strong sales where's all this demand coming from. well the demand is there's a lot of people in india the number one market right now is china and india is posed to be the second largest market in outselling the u.s. and ford once a big slice of that so they're putting a big investment in local production to produce cars for that market. has had another really bad quarter and more like this was the fourth worst quarterly loss since it became publicly traded in two thousand and ten why happen here. well first
off there's a lot of promises and not a lot of deliverables and there's a lot of confusion in the marketplace to start off with tesla lost seventy five hundred dollar tax credit so that that cut in half in the first quarter will be cut in half in june and then be gone by the end of the year and that impacts those customers remember most of the people that are buying as vehicles are people that make a lot of money and this is their second or third vehicle it's certainly not their primary vehicle and even though there were lots of promises for that thirty five thousand dollars car those never came to fruition in order to buy those you didn't buy them in the stores you had to buy them by calling in and then they shut down a bunch of stores then they didn't shut down a lot of stores and they let a lot of people go and just last friday they lost four board members so with all this ups and downs and of course over promising and under delivering there was a semi tractor truck there is the model why there was supposed to be a pickup truck there supposed to be a sports car lots of promises and of course this all costs money and then. i had
a problem with their battery supplier decided to make their own batteries and cut ties with not just panasonic but also within video which is the lead chip maker in the country and they're probably the lead chip maker in the world they do a lot of software for a lot of different premium brands and because of all this to me it sounds like he can't pay his bills we know that based on his cash flow and the fact that the numbers were substantially less than sales and of course a huge loss for tesla and that affects not just the stock which was down over eleven dollars today at market close but it's impact in the future and we've seen a lot of drop downs including the promises of autonomous vehicles in a million robo taxis it's easy to hit the surface and over promise and under deliver and i think that a lot of investors are starting to be very wise to this and a lot of people are saying you know what i already have a tesla i'm going to look at other brands like riviera and or mall and there's a lot of product out there. speaking of thomas driving on autonomy day tesla c.e.o. must claim that it's financially insane to buy anything other than
a tesla it will be like owning a horse in three years so saying they were saying that the next quarter they will have more than one million taxis on the road seriously and there's not a lot of facts there's so much wrong with that statement from him not from you but when he made that statement of course twitter went on fire people saying wait a minute wait a minute you can't tell people that their cars are suddenly taxis ok if you decided to do that who's going to cover the insurance on this this changes the insurance plan for everybody of course tussles the highest and feel called to insure right now because the replacement cost being so high and top of that consumers that drive their cars is personal use it's a different tax base and a different base for insurance if you're going to use it as a livery vehicle or as a robo taxi besides it fact that all times autonomy of a level five is far from here we don't have government regulations in place insurance companies don't want to insure this we've got hackers we still don't have
a good no firewall and tesla certainly doesn't they've been hacked multiple times even thirty miles away from where the vehicle is from the hacker and on top of that we have weather conditions so i don't see how this is going to work it sounds great in a perfect world but weather is never going to be something that we can control and with that thought in mind saying there to be a million robo taxis saying that we're driving horses is just more fodder for trying to raise money because he's going to have to raise a lot of money because right now he's in a very negative cash situation every vehicle he sells he takes a loss and it's entirely possible that president trump in the administration is going to remove that seventy five hundred dollar tax credit in total which also includes carbon credits that's really going to hurt him because that's where he makes his profits sounds like he's just been a evangelist at porto i thought this. but i don't exactly well there's a lot of a lot of people that follow him you sort of the pied piper yeah but i guess right now that part today the car coach thank you so much for your time. thank you.
the case of the controversial north stream two pipeline that would bring russian oil and gas directly to germany may be heading to european courts and a letter to outgoing european commission president john claude juncker norman strain to see. protested provisions of the new gas directive which could block the project the c.e.o. warned that such action would be quote discriminatory and put officials in violation of treaty obligations the core of this dispute seems to center on whether north stream too could be termed completed project making it eligible for an exemption of the gas directive and while the pipelines backer push their fight into the legal realm the pipeline is also getting dragged farther into the trans european politics man fred webber a german candidate for the presidency of the european commission from the right wing european peoples party has said that if he wins he will block the project.
time now for a quick break here because when we return bad boy as the banking world wells fargo is back in the middle of controversy carla naylor of public citizen joins us to break down the bank heated annual meeting. and as we go to break here the numbers at the close. the government just creates the platform against this dialogue because their platform does not allow any compromise in their platform talks about serbian crimes
how serbia should pay war reparations. being in all its official states cos it was simply things that everything is already over when they wake up from the illusions that they will have to face it several reality. even. as i live the good. fun. we have many things in this world and this is. why some peoples also take our thing all the power just for themselves and.
a vote of forty eight to eighteen the bonzo narrow the administration is racing against the president's falling poll numbers to deliver what the business class considers a must pass legislation a poll this week from brazil's national industry confederation shows the brazilian president support falling to thirty five percent but the bill is unlikely to pass the full chamber before july because the bill would amend the brazilian constitution it would require at three fifth's super majority to pass the chamber before moving on to the senate. mexican inflation seems to be ticking back up under president andres manuel lopez obrador after a period of warning the latest official figures show inflation for the year running at four point three eight percent through mid april that number came and slightly asked above expectations and above the mexican central bank's target level of three percent while longer term direction on inflation is not readily apparent the uptake
may make the mexican central bank more reluctant to lower interest rates currently at a ten year high of eight point two five percent. wells fargo's annual shareholders' meeting turned out to be a rowdy affair angry shareholders and hecklers repeatedly interrupted the meeting to protest the bank's consumer abuses that came to light in twenty sixteen following the disturbances in turn c l alan parker demanded the protesters be removed from the meeting. and i have to ask you to leave as well i'm sure. there will be. sure i'm delighted to hear your comments and answer your questions in a question and answer period but not during the time that i'm permitted to speak. to you. oh i was. i'm happy to hear whatever i mention make if you file for
your time. ok before i ever ask you to leave as well. wells fargo's employees illegally opened millions of accounts without customer authorize ations in an attempt to meet these and vicious sales goals as a result wells fargo has lost the public trust the latest earnings reports show other big banks growing their average deposits while wells fargo reported a three percent decline in the first quarter consumer and small business banking deposits dipped two percent and shareholders are clearly still angry here to tell us more as bartlett naylor financial policy advocate a public citizen thanks for having me guy you're here they say that trust is something that once broken can never really be put back together again is this true or can wells fargo salvage their reputation i don't think so i think wells fargo is broken frankly i think most of the mega banks are broke and i don't think consumers brag that they are wells fargo customers or j.p. morgan customers we've seen it in other industries the biggest tobacco company used
to be known as philip morris so broken is it that it changed its name to algeria. interest i actually did not know that so while the illegal practice of opening accounts is clearly a matter of right and wrong judgment wells fargo also suffers the technical problems too in two thousand and eighteen a four hundred wells fargo customers lost their home when they were accidentally foreclosed on after a software glitch so what is the future for wells fargo as they are clearly in need of some corporate structure and wells fargo is the subject of something like a dozen fourteen consent decrees that's the sort of euphemism for a legal sanction under which they're obliged to repair themselves we think this bank and the other three mega banks with two trillion dollars in assets are simply too big too big to manage their each five times the size of exxon in terms of assets. so when i think that either this is a criminal enterprise and many people actually have to put be put in jail or if
it's not then these ubiquitous examples of misconduct show the bank is too big to manage it needs to be broken up. who would be the ideal partnership for them to either get acquired by take a chunk off of that well ideally all of these mega banks are the amalgamation of smaller banks you're actually seeing b b t sun trust merging now the better idea in my opinion is to break them up into the smaller units they once were i think that would serve shareholders i think that would serve the consumers i think that would serve employees as well as on the topic of big bang noise or bang and commerce bank two of germany's top lender banks were and merger talks for six weeks now but they just reported that merger the merger had collapsed what happened well this is this merger grew from the conceit of the german government that they want to stable mega bank the problem is both of these are our wounded entities and having them lean up
against each other isn't going to really make a solid bank again deutsche bank decided that it was going to gamble the way the american banks were and that proved disastrous from two thousand from two thousand and eight we saw that it collapsed and it really hasn't recovered again i think you see that in germany employees have a much greater say you saw them voicing their anger at the wells fargo meeting well they have legal standing in germany and we know that this merger is going to be viable economically because it's going to lead to the loss of a lot of jobs well because employees have rights in germany i think they've helped put a stop to this merger talk at least now for now byron our financial policy advocate a public that ascent thank you so much for your time thank you. i said say the area of japan thought bankrupt is the best day on hundred and twenty
five million dollars in a joint project with the alphabet corporation to develop airborne cellphone antenna at the thought bank that city very small ball. well work with loon a corporate sibling of google and the alphabet stable of holding to attempt to transform the idea into usable technology haps mobile it has had the benefit of employees from aerospace firm aero environment while luna brings to the table their experience with high tech balloons in their name that their name playfully alludes to loon previously announced that they would deploy balloons to expand internet access in kenya haps mobile on the other hand has focused on developing a drone antenna that is all wing and solar powered the prototype named hawk thirty was officially presented thursday after a rumor test flights in march. stay on the topic of tech giants and madonna is under fire yet again in the growing scandal of tech privacy bloomberg
news is reporting that amazon employees revealed information and data can be used to pinpoint users' addresses this news comes just weeks after revelations that amazon employees are able to manually listen under the guise of product improvement the report goes on to state that although no employees have been documented taking advantage of this the company has tried to downplay these reports. earnings week is heating up we're going to take a look at some of these things stocks google is set to report monday after the close and amazon is reporting this afternoon amazon which we just discussed has risen twenty six percent this year are ready through monday's close of eight hundred eighty seven outperforming the broader as m.p. up sixteen percent this year last quarter they had previously guided conservatively and expectations are for them to deliver four dollars and seventy two cents an a.p. as on fifty nine point six billion dollars in revenue for year over year growth of forty four percent and seventeen percent respectively this would actually mark the
slowest year over year growth since two thousand and fifteen but in exchange for slower growth we want to see fatter margins and. isn't traded all day on change right now as the street is very uncertain how this report will go there are three key points that analysts are going to be on the lookout for spend emmas on reported that they will be spending big investing in data centers and warehouses this year this could put pressure on profit margins growth of web services and is on web services is the fastest growing segment and there are high expectations for it to deliver over forty percent year over year growth will see if they hit that mark and finally we have international concerns when amazon look internationally they face trouble in india with their new e-commerce regulations and then stiff competition in china we'll have to see how the amazon decides to respond to these challenges. then take a look at facebook they reported last night delivering a strong q one earnings report they now have one point five billion daily active
users and raked in over fifteen billion in revenue up twenty six percent year over year now this is their first earnings report following facebook's worst ever security breach back in september where they impacted over fifty million users as you know facebook's legal battle with the f.t.c. has been a constant overhang on the stock as investors were concerned about this record setting fine this fine was supposed to set an example to the entire industry and was expected to be much larger than the previous record of twenty two point five million dollars penalty against google well facebook actually budgeted for this setting aside three billion dollars to cover this expected fine while this is a record fine for the f.t.c. three billion is less than one percent of facebook's twenty eighteen revenue a fifty six billion facebook reported a.p.s. of a set five cents compared to estimates of a dollar sixty three without the fine they would have had a p.s.
of a dollar eighty nine media expectations easily the stock is now up over six percent for the day on a great earnings report. now back to. boeing boeing this by lowered expectations disappointed again as a company suspended twenty nine hundred four casts citing uncertainty around seven thirty seven max fleet revenue fell two percent year over year as a result of fewer deliveries however it was slightly cushioned by the higher margins from the seven eighty seven the grounding of the seven thirty seven max planes will cost boeing one billion dollars in the first quarter but yet the stock was actually unchanged for the day following this as most of the news has already been priced in this indicates that investors are still supporting the name and they see a long term opportunity at this level boeing's dividend remains safe giving investors a two point two percent dividend yield at current prices the stock is trading higher today and it looks like that analysts to support it even worse results than
previously expected. that's it by this time you can catch a boom bust on you to www dot com bust the next time. join me every thursday on the alex sullivan show and i'll be speaking to us of the world of politics for this i'm show business i'll see that. facebook and google started with a great idea and great ideals unfortunately it was also a very dark so. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions from the very first character
that you type into the search bar it will always favor one dog food over another one comparative shopping service over another. and one candidate over another they can suppress certain types of results deiced on what they think you should be seen if they have this kind of power then democracy is an illusion the free and fair election besan exist the more rope we give them the sooner we're all. in the united states relations with russia or iran have never been particularly cordial but under the presidency of donald trump both took a downward spiral there have been sanctions attempts at isolation and a badge of evil from both moscow and to iran how are the two leveraging american tended to.
forget only if you don't support the book. you sit through to do. something as you did something. that you were among the group. to build a movie didn't you except your then he says and pulls with folks like me the folks at the security just hold it where you go pick up. a. little sancho. we're going to produce a. new
. device if it does this is what i hope that the pushing of. imagine that you run a blood bank and in one room are dead patients they've been dead since two thousand and eight j.p. morgan goldman sachs deutsch your bank b.n.p. society generali h.s.b.c. except and the other room you have living middle class people and the point of blood bank is to take blood from the living middle class people and to transfused blood to the dead banks next door that they've been dead now for more than ten years well naturally the people that are in the middle class are going to start to suffer and suffer horribly and many of them will die by the way they won't be getting any of the blood from the other middle class people to keep them alive all the blood all the plasma goes to the dead but.
the leaders of russia north korea hold a joint summit softer more than two hours of face to face talks about kim jong un expressed a willingness to work towards the deep nuclearization of the korean peninsula. is this something chairman king also region wrinkly to tell us about his position and about the questions he has in connection with the situation on the korean peninsula . president trying to find some of his most unpopular policies during a speech saying but diffusing the widespread public anger and sustaining france's nationwide protests. the un report notes u.s. international and.